Opening Remarks by Second Minister for Finance, Mr Chee Hong Tat, at the Conference on International Industrial Cooperation 2025, on 15 May 2025

Mr Kho Choon Keng, President, Singapore Chinese Chamber of Commerce and Industry,

Mr Zhang Yujing, President, China Chamber of Commerce for Import and Export of Machinery and Electronic Products,

His Excellency Akanat Promphan, Minister of Industry, Kingdom of Thailand,

His Excellency Cao Zhongming, Ambassador, Embassy of the People’s Republic of China in Singapore,

Distinguished guests, ladies and gentlemen,

1. A very good morning to all. 

   1. I am very happy to join everyone at this conference.

   2. I want to thank the organisers for inviting me and for organising this event. 

A Changed World

2. The new world order will be different from what we experienced in the past few decades.

   1. Singapore has developed in a multi-lateral world where countries big and small operate mostly according to the rule of law, and remain connected with one another through trade and investments in a globalised economy.

   2. But we are now facing a different international environment which is more protectionistic and arbitrary.

3. For now, the Trump administration has paused most of the elevated tariff rates for 90 days since 9 April.

   1. And earlier this week, we saw positive news that US and China have significantly lowered their tariffs for 90 days from 14 May.

   2. Singapore welcomes this de-escalation of the ongoing trade war, and efforts by both sides to reach a mutually agreeable solution.

   3. We hope that US and China can resolve their differences, and reach a landing point that reduces uncertainties for the global economy.

4. Nevertheless, we have to still bear in mind that tariffs remain elevated compared to last year, and could still be subject to change.

   1. Businesses are therefore watching to see how they should adjust their supply chains and production centres. In the meantime, they hold back on investment and hiring decisions.

   2. Business leaders told us that actually the heightened uncertainty is worse than the tariffs themselves.

   3. A recent survey by the Singapore Business Federation found that 1 in 2 businesses are holding back on new hiring in the next three months. This survey was done before the latest round of discussion between US and China. But as I mentioned earlier, the uncertainties on what is going to happen after the 90 days, is still a question mark.

   4. This will in turn affect our workers. Our students who are graduating will also be worried about securing jobs, although we are aware that certain sectors are still hiring.

5. That is why the Government has set up the Singapore Economic Resilience Taskforce, chaired by Deputy Prime Minister Gan Kim Yong, to prepare for this unfolding global situation. This Taskforce also comprises representatives from the government, industry and our unions.

   1. We stand ready to support businesses and all Singaporeans through these disruptions. Whether to help companies ease cashflow tightness, or to help workers and recent graduates to secure employment.

   2. These will build on the initiatives the Government has announced and rolled out over the years, to prepare our economy for a more turbulent and uncertain world.

   3. In this year’s Budget, we rolled out comprehensive measures to ease cost pressures for businesses and families. We also enhanced schemes to help companies transform and seek out new markets, and help our workers reskill, upskill and adapt in a changing economy.

   4. As Prime Minister Wong said, Singaporeans need not fear. We will walk this journey with you and work together with everyone to navigate through this crisis.

Opportunities amidst Uncertainty

6. Beyond the immediate uncertainties, we need to keep an eye on the future.

   1. Despite the temporary reprieve in the trade war, we should not draw the wrong conclusion that things will go back to the way they were before. They will not.

   2. The world has become increasingly uncertain, more protectionist and more contested, and Singapore, as a small open economy, we have no choice but to adapt to this new normal.

7. This is what one of the workstreams under the Taskforce is focusing on.

   1. To review our strategies, strengthen our economic resilience and importantly, find new opportunities for growth.

   2. It is not all gloom and doom, it is not all playing defence. We also have to look out for new opportunities and new trade linkages, that our companies and our workers can benefit from.

   3. So that we can continue to have competitive enterprises, good jobs and better wages for Singaporeans.

   4. And promote partnerships with like-minded countries and organisations. I think this is something that we have to do more.

8. Both the US and China are important friends to Singapore and our region.

   1. We have strong ties with the US in security and in economic collaboration. The US is the largest investor in Singapore and American firms employ many Singaporeans.

   2. Likewise, China is one of our key trading partners and a major investment destination for our firms.

9. So it is in Singapore’s interest to continue to engage both US and China, and look for win-win outcomes where possible.

   1. The US have clarified that “America First” does not mean “America Alone”.

   2. We want the US to remain engaged in Asia. MAGA should not become “Make America Go Away”. And Singapore will want to continue to be a trusted partner for the US.

   3. Likewise with China. We want to deepen and broaden our collaboration with China, including with the different provinces, and for Chinese companies to continue to play a constructive role in the region. Many Chinese companies are already in the region, as you can see from the exhibition projects. And if you have plans to continue to expand your operations here, Singapore can be a hub for Chinese companies who are looking to expand in Southeast Asia.

   4. And in a multi-polar world, we also welcome the continued presence of others such as the EU, UK, Japan, Republic of Korea, India and Australia, and we hope we can collaborate and do more together in this region.

10. Instead of a zero-sum mentality, we focus on growing the overall economic pie. So that we can have win-win outcomes and not just focus on win-lose, because if you focus too much on win-lose, you will soon have lose-lose.

11. The challenges we face today are not caused by free trade and globalisation.

    1. But rather, that the benefits of globalisation may not have been fairly distributed.

    2. So yes, we understand why workers in certain parts of the US are concerned because they see globalisation taking away their jobs.

    3. But the solution is not to stop globalisation, the solution is to ensure that the benefits of trade and globalisation can also be fairly distributed so that you can uplift all segments of society. Then you would have economic growth growing hand in hand with a strengthening social compact (社会契约).

12. We also believe that the concerns can and should be addressed through multilateral discussion and collective actions.

    1. We can improve the global system without tearing it down.

    2. And we also need policies to redistribute the gains from economic growth, so that growth can benefit all segments of society.

13. In my speech today, I would like to propose three key areas for Singapore to focus on, as we seek out new opportunities in a more turbulent world.

    1. First, to build stronger economic linkages with like-minded partners.

    2. Next, to strengthen Singapore as a trusted business hub.

    3. And finally, enhance international collaboration to capture new growth opportunities.

Strengthening our Trade Links

14. First, we must continue to stay connected with the world, and foster stronger trade links with like-minded countries and companies.

15. The business sector will always want to seek out ways to optimise how they do business, and how to maximise their profits.

    1. Regardless of what the eventual tariff framework will be, companies will adapt to the new restrictions and organise themselves and operations around the tariffs.

    2. They will need to establish new supply chains, new manufacturing bases, new markets and new shipping routes.

    3. We cannot predict what the global trading patterns will look like, but what we can do is to do our best to ensure that Singapore, regardless of how the global supply chain shift, will remain a key node where trade can flow through safely and freely.

16. And this is why Singapore must continue to enhance our trade links.

    1. Today, we have established a strong network of 28 free trade agreements, and we are working to implement the MERCOSUR-Singapore FTA. This is with some of the Latin America countries.

    2. We will continue to explore more opportunities with countries who are keen to partner with us, including in new areas such as the digital and green economy.

17. I am glad to see that many countries also share Singapore’s belief in preserving a multilateral rules-based global trading system.

    1. China holds this view too and has continued to champion free trade at various platforms.

    2. It is also the position of the EU, UK, Australia, South Korea, Japan, India and many others.

    3. ASEAN has collectively reaffirmed our support for a free, fair and inclusive multilateral trading system.

18. Between like-minded partners, we must continue to stay open and bring down or even eliminate as many trade and non-trade barriers as possible. In fact, I would argue that the more tariffs we see coming out of US, the more important it is for the rest of us to lower the trade barriers between us, so that more trade can go between the like-minded countries.

    1. In this way, we will be in a good position to benefit from new global supply chains as they take shape.

Strengthening Singapore as a Business Hub

19. The second area of focus is to strengthen Singapore’s position as a business hub.

20. Over the decades, we have established ourselves as a global hub in many areas, such as in financial services, logistics, manufacturing and professional services. We can attribute our success to a few fundamentals:

    1. First, our reputation as a trusted business hub, with strong rule of law.

    2. Our connectivity and linkages with other economies.

    3. And a skilled talent pool, comprising both local and international talent.

    4. We have to be clear that to maintain our position as a hub, Singapore must not go down the path of adopting inward looking and xenophobic policies. We should remain open and welcoming to international investments and talent. You cannot be a hub and still be inward looking. If you want to be a hub, then you must be open and allow a free flow of ideas, investments and talents, but with proper safeguards to protect the country. This comes as a whole package, you cannot cherry pick. But in the process of remaining open, in the process of remaining connected, there will be pluses and minuses. As I mentioned earlier, it will lead to more churn in our economy, there will be more competition and workers may be affected. So what we do is that we use the proceeds of growth to invest in helping our companies and workers so that they become more competitive, and in doing so we strengthen our social compact, so that social compact and economic growth will continue to make progress together.

21. I believe the world will still need hub economies, we are not going to go back to a world that is separated, we will still be interconnected. We can bring together talent, investment, innovation and ideas.

    1. So Singapore hopes to continue to strengthen our foundations to enhance our position as a trusted hub.

    2. We must also continue to develop our physical and digital infrastructure, including our airport, yesterday we did the groundbreaking for Changi airport T5, our seaport, broadband networks and submarine cables.

    3. We are also investing in our workforce through various SkillsFuture initiatives to ensure that our workers can adapt to this global economy. With AI for example, how do we help our workers, how do we use technology so that we can be more competitive and productive. If you reject technology, if you try to put barriers to prevent technology from coming in, in the end you are short-changing yourself. We have to remain open, we have to embrace technology, we have to prepare our workers for this technology. We also need to help our local companies, including our SMEs, transform and become more productive. Again, we should avoid the zero-sum mentality. Some might say don’t focus on the MNCs, just focus on the SMEs. I think many of SME bosses will tell you that they welcome the MNCs because the MNCs bring economic and business opportunities for all our assets. It is not a zero-sum game. It is not a one-zero, we want both. We want the MNCs and we also want to grow our SMEs. If we do it well, both are complementary.

22. At the same time, we know there are areas we do need to improve on. I won’t give you an exhaustive list.

    1. But one area that we want to do better is our public equities market.

    2. While Singapore has grown as a financial centre over the past decade, our local equities market is not as attractive. We are facing some challenges to attract new listings and grow its liquidity.

    3. I am chairing a Review Group in my capacity as Deputy Chairman of the Monetary Association of Singapore, to work with industry stakeholders, to see how we can address these challenges.

    4. We have announced the first tranche of recommendations earlier this year, which have been positively received by industry stakeholders.

    5. MAS and SGX will be progressively rolling out these measures.

    6. The next tranche of recommendations will be announced in the second half of this year.

23. Another area that we want to grow is our entrepreneurial ecosystem.

    1. We have made some progress over the years, but I believe we can go further and do better.

    2. In 2024, Singapore accounted for two-thirds of startup funding raised in Southeast Asia, and we have also produced more than half of Southeast Asia’s unicorns.

    3. But we want to do more.

    4. So we will look further into how we can tap into our research and innovation ecosystem to grow the next generation of unicorns and deep-tech start-ups.

    5. Economic Development Board is actively engaging the founders of these enterprises and also the multi-national enterprises to come to Singapore, to nurture a new generation of ventures and innovative companies here.

    6. We are also reviewing our policies to see how we can create a more pro-enterprise business environment, not just for the larger companies, but also to nurture the growth of start-ups. This includes use of regulatory sandboxes to test out new ideas and business models, and see how we can reduce regulatory burden and cost for businesses. This is something we need to do with our industry partners. We need your feedback, we need your ideas. The government is committed to working closely with you to see how we can make Singapore a good place for start-ups.

Strengthening Singapore as a Business Hub

24. The third and final area I want to touch on is how to identify and develop new growth areas.

    1. This includes new areas within existing sectors where we have considerable strengths, such as advanced manufacturing, financial services and supply chain management, tapping on our position as a key aviation hub and transhipment port.

    2. At the same time, we must also look out for new opportunities, from digital transformation and artificial intelligence to sustainability and green innovation.

25. By working together, countries can not only seize economic opportunities but also drive collective prosperity. This is one of the key messages that I want to leave with all of you. Don’t see this as a zero-sum game, it is not a win-lose, what we want is win-win 互惠共赢, so that everybody can have collective growth and prosperity and all our citizens can have better lives. It is possible.

26. Take for example the green transition.

    1. It is a global challenge. When we have climate change and sea level rise, I don’t think any country can say that I am not affected. It affects all of us. Climate change is a global challenge that requires a global response.

    2. But it also presents many new opportunities for us to achieve innovation and technology-driven growth.

    3. In fact, Chinese companies have done very well in this area. Look at the companies in this exhibition, many of them have demonstrated the capabilities and solutions that can help to achieve greener and sustainable outcomes. I am in charge of the Singapore-Shandong Business Council and one of the areas that the Shandong government is very keen to push is the Jinan Start-up Area (JSA). There are also many companies and opportunities there. This is another good way that we can work together, seize more opportunities, and in the process make the world a better place, reduce carbon emission, make it more sustainable.

27. Another area is digitalisation.

    1. It has become a powerful driver of inclusive and sustainable growth.

    2. Countries can work together by establishing interoperable digital trade platforms, harmonising cybersecurity and data protection standards, and facilitating cross-border digital payments.

    3. Singapore and China have collaborated on the Chongqing Connectivity Initiative (CCI), which has developed projects in areas such as digital finance, smart logistics and smart city development.

28. Singapore will also continue to broaden our partnerships in the green and digital economies.

    1. We are expanding our networks of Digital Economy Agreements to enable our businesses to capitalise on cross-border digital services.

    2. We are advancing our Green Economy Agreements to catalyse collaborations in green innovation and trade flows in sustainable products.

29. Through these agreements, we hope to be able to create more opportunities to address these common challenges and drive collective prosperity.

Conclusion

30. I have presented some ideas on how Singapore could navigate this new world order. This is from Singapore’s perspective, but I hope these ideas will also be helpful to our friends from other countries, because we want to do this in partnership and in collaboration with all.

    1. We will not turn our backs on globalisation but will double down on our connectivity and partnerships.

    2. Because we believe that in these turbulent times, it is more crucial than ever for like-minded countries and partners to foster closer collaboration and build a more resilient rules-based trading system.

    3. And for Singapore to be able to leverage on our strengths as a trusted hub, our excellent connectivity, our openness to trade and talent, our ability to plan long-term and importantly, our strong tripartite partnership.

31. As the Taskforce continues our work, my colleagues and I also welcome feedback from industry and our international partners on how we can respond and seize new opportunities. The businesses would be closer to the commercial frontline, and you would be able to know where are some of these opportunities. We want to work closer with you and support you.

32. Please allow me to now say a few words in Mandarin.

33. 各位嘉宾、朋友们：贸易格局正在重新洗牌，唯有秉持互信、共赢的精神，我们才能实现持久的繁荣和稳定。

34. 新加坡珍惜与中国和各国伙伴的长期合作关系。这是我们多年来建立起来的。我们也希望在此基础上继续深化合作，和大家携手推动三方面的工作。

    1. 第一，在全球供应链重组的趋势下，进一步加强和各国的贸易联系和互信；

    2. 第二，继续强化新加坡作为全球营商枢纽的角色，为国际和本地企业创造更多的价值；

    3. 第三，更好地把握数码化、绿色转型等新的发展方向，开拓更多的增长机遇。

35. 所谓千里之行，始于足下。我上中学的时侯，很喜欢看的一部电视剧是《西游记》，片尾曲有一段歌词，我至今印象深刻：“一番番春秋冬夏，一场场酸甜苦辣，敢问路在何方？路在脚下。”

36. 只要我们携手同行，就一定能够开辟一条互惠共赢的发展之路，为我们的人民创造更美好的未来。

37. 非常感谢大家今天出席这个会议。我祝在座的各位朋友身体健康，也祝你们在这个会议中收获满满，祝会议圆满成功！谢谢大家。